The bank’s study found that a would-be buyer could snap up seven houses at Newbiggin for the price of one in Britain’s most expensive seaside community.

Last night, Newbiggin’s mayor said the town’s low prices were due to its mining past and told prospective purchasers the community is a “lovely place” to live.

Halifax looked at 196 coastal towns with Newbiggin coming out above eight Scottish towns in the top 10 of cheapest communities, with Port Bannatyne second with an average house price of £85,605.

The bank found that a buyer could snap up seven properties in Newbiggin for the price of one at Salcombe in Devon, the most expensive seaside town which has an average price of £615,344.

Coun Will Rogers, mayor of Newbiggin, said: “It’s obviously been a mining area and that is why the prices are what they are. But as a town council we are seeking to change the quality of the housing to be a bit more upmarket.

“There is some areas that are available for development and we are hoping some better quality development will be built on those sites.”

With The Couple sea sculpture, its sandy beach with promenade and a Maritime Centre, the councillor felt his town has plenty to offer.

He said: “Newbiggin is a lovely place. It has got a mixture of quite expensive housing on the sea front, ex-council housing and ex-mine workers’ housing.

“I was talking to somebody from Cambridge and somebody from Cornwall and they were saying how much of a difference they have noticed over the last three or four years since the beach has been replenished.

“Now with the prices of petrol people are looking not to travel so far. In the past they have gone to Bamburgh and Seahouses but I think they are looking for somewhere closer. It is good to have housing at affordable cost. People can commute to Newcastle from Newbiggin.”

The study found that house prices in seaside towns have risen by around £485 a month over the last decade, but that coastal living is still significantly cheaper than property prices across Britain generally.

On average, property prices in seaside towns have grown by 42% in the last ten years to reach £196,826, according to Halifax.

But the typical price tag on a seaside home is still over £42,000 cheaper than the average house price across Britain, at £239,518.

Craig McKinlay, mortgage director at Halifax, said: “Seaside towns provide a unique lifestyle opportunity and remain popular places for people to live, while also attracting those looking for second homes or holiday properties which can place additional upward pressure on house prices.

“Living near the seaside remains an achievable dream for many.”

The study used figures from the Land Registry and the Registrar of Scotland.